Euro zone's bailout offer for Cyprus still stands: Eurogroup chief

Published March 19, 2013

Reuters

THE HAGUE – The euro zone's 10 billion euro ($13 billion) rescue package for Cyprus is still on the table but it is up to the Mediterranean island to determine how to finance its remaining needs, the head of the Eurogroup said on Tuesday.

Reacting to the Cypriot parliament's rejection of a proposed levy on savings in banks as a condition for a European bailout on Tuesday, Jeroen Dijsselbloem said "deeply regretted" lawmakers' decision.

The Dutch finance minister, who chairs euro zone finance ministers meetings, said that the conditions, the size of the bailout and the need to cut Cyprus' debt were all still valid.

"The offer from the euro zone and the Eurogroup to Cyprus still stands," Dijsselbloem told reporters.

"The ball is in Cyprus's court... The greatest volumes of wealth in Cyprus are in the banks, and it's the banks that have problems, so it's unavoidable that we look at this."